It is known to use permanent magnet alloys, and particularly permanent magnet alloys embodying one or more rare earth elements with a transistion element iron and boron, for applications requiring permanent magnet properties at elevated temperatures. Specifically in this regard, permanent magnets used in electric motors may encounter motor operating temperatures in excess of 150.degree. C. The permanent magnet alloy R.sub.2 FE.sub.14 B has a temperature dependence of magnetization of -0.08% to -0.12% per .degree.C. over the temperature range of -50.degree. C. to 150.degree. C. Accordingly, this permanent magnet alloy is limited with respect to high-temperature applications, and particularly use in electric motors operating at temperatures in excess of 150.degree. C. For practical applications, it is necessary that permanent magnet alloys at the maximum operating temperature exhibit a magnetization of 8000 Gauss.